Securing the Future - Priorities for the UK Plastics Industry in a New UK-EU Relationship

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Securing the Future

Priorities for the UK Plastics Industry in a New UK-EU Relationship

Plastics — fundamental to the UK economy

T

he plastics industry is one of the UK’s largest manufacturing sectors — it employs more people than the pharmaceutical, glass, paper, nuclear and steel industries combined. Approximate direct employment in various manufacturing sectors

£23.5 bn plastics industry turnover

400,000 380,000 360,000

170,000

180,000 160,000 140,000 120,000 100,000 80,000

people employed

60,000 40,000 20,000

Food and Drink

Plastics

Automotive Manufacturing

Defence

Chemical

Furniture, bed and furnishings

Aerospace

Marine

Mining and Quarrying

Nuclear

Pharmaceutical

Paper

Steel

Glass

0

With a turnover of £23.5bn, this industry includes raw material producers, machinery and equipment suppliers, manufacturers of a huge range of semi-finished and finished goods, and recyclers. Plastics underpin many sectors in the UK economy including automotive, aerospace, construction, energy, electrical and electronic, healthcare, agriculture and food distribution. None of these sectors could function effectively without plastics. Maintaining a business climate that supports investment is crucial for the UK, as a large percentage of UK plastics companies are ultimately foreign owned. This is especially true of the larger companies.

65%

of plastics and plastic products exported by the UK go to EU countries

53%

UK average

69%

of imported plastics and plastic products come from the EU

45%

UK average

6,200 companies in the plastics industry

30+% plastics and plastic products exported

Free access to the single market The EU is the UK’s single most important trading partner for plastics materials and products. Maintaining easy access is strategically important for the UK plastics industry. Plastics are one of the UK’s top ten exports. In 2015 exports of plastics and plastic products to the EU totalled £4.9bn. However, the UK plastics industry is heavily reliant on imports compared to other global players. In 2015 it exported £1.8bn of raw materials to EU member states but imported £3.8bn. Whereas France, Germany and Spain all produce more plastics than they consume, the UK only produces about 50% — and some key plastics materials are not manufactured in the UK at all. Not only is the UK plastics industry heavily reliant on imported raw materials, almost all machinery is imported ­— and 80% of that is sourced from the EU.


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